Lake County, IL Short-Term Rentals: Insurance Requirements (2026)

STR-permitting municipalities in Lake County — including Fox Lake, Antioch, Lake Villa, Round Lake, and Libertyville — require hosts to carry liability insurance as part of the permit application. Minimum coverage is typically $500,000 per occurrence with some jurisdictions requiring $1,000,000 aggregate. Standard Illinois homeowner policies (ISO HO-3) explicitly exclude business or commercial activity including short-term rental, so hosts must either purchase a dedicated home-sharing rider (State Farm, Allstate, Farmers offer these) or convert to a commercial landlord/STR policy (Proper Insurance, Slice, CBIZ). Platform-provided coverage — Airbnb's AirCover for Hosts (up to $1M) and Vrbo's Liability Insurance — is secondary and does not generally satisfy municipal proof-of-insurance requirements, which demand a named insured certificate (ACORD 25) listing the property address. Hosts must also carry workers' compensation if hiring cleaners as employees under 820 ILCS 305. Proof of insurance is typically required at initial application and annual renewal.